The Home Office today published a Regulatory Impact Assessment (RIA) that outlined an intention to raise the licence application fee, demonstrating that an increase is needed to enable the SIA to meet its need to be self-funding, and to continue achieving the objectives of licensing. The RIA illustrates an increase in the licence application fee is necessary because SIA income from licensing has been less than expected. The shortfall stems from unreliable and unavailable data gathered in 2002/03, before the start of licensing, and from changes taking place across various industry sectors.

Licence renewal applications can be made up to four months in advance of licence expiration and, if received by the SIA before the intended increase on 6 April 2007, will be processed at the current fee of £190.

To enable the SIA to be self-funding the new fee of £245 has been planned in consideration of the future licensable population (using more reliable data now available), the likely churn rate across the private security industry and SIA running costs. The SIA will move towards reviewing the licence fee on an annual basis.